Crypto regulations will take time, says Finance Minister Nirmala Sitharaman

Crypto Regulations in India: Reiterating the need for having comprehensive global regulations on cryptocurrencies, Union Finance Minister Nirmala Sitharaman said that India will not rush through introducing regulations on the use of cryptocurrencies.

“It will have to take its time…all of us to be sure that at least with the given available information, we’re making the decision. It can’t be rushed through,” she said in an interaction at Stanford University.

During the interaction, the FM clarified that the government was open to promote innovation and progress made in distributed ledger technologies that are a part of the wider changes in the blockchain technology. However, she also raised concerns that this technology could be used for money laundering and financing terrorist outfits.

“So, our intention is in no way to hurt this (innovation around cryptocurrency)…but (we need to) define for ourselves…,” Sitharaman said, as per a PTI report.

“So, these are some of the concerns, not just India, but many countries of the world have and are also discussed in global, multilateral platforms,” she added.

It is worth noting that this is not the first time that the Union Finance Minister has called for having a collective global effort for regulating cryptocurrencies.

At the spring meeting of the International Monetary Fund earlier this month the FM had said that while India recognises the disruptive power of cryptocurrencies and Blockchain-based technologies, it was also concerned that these technologies could be used for money laundering. “Regulating cannot be done by a single country within its terrain through some effective method,” Sitharaman had said at the time.

Similarly, answering a question regarding cryptocurrencies in Rajya Sabha back in December last year, Sitharaman had said that no decision had been taken regarding putting a blanket ban on cryptocurrencies. “This is a risky area and not in a complete regulatory framework. No decision was taken on banning its advisements. Steps are taken to create awareness through RBI and SEBI. The government will soon introduce a Bill,” she had said at the time.

“To regulate it, will have to be a collective effort,” she had said at the time, as reported by The Economic Times.

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Conclusion

India will not rush through introducing regulations on the use of cryptocurrencies. It will take its time, and all countries to be sure that they’re making the right decision when/if it comes to cryptocurrency regulation